Presented by-

Tamal Manna Enroll: 251091131

At a Glance Introduction- Strategic Management.

Evolution of IT Industry.

Porter’s 5 Forces (a)- Concept Introduction. (b)- Relevant Search.

Conclusion

Strategic Management A field that deals with the major intended and

emergent initiatives taken by general managers.

On behalf of owners, involving utilization of resources, to enhance the performance of firms in their external environments.

It entails specifying the organization's mission, vision and objectives, developing policies and plans, and then allocating resources into actual reality.

Evolution of IT Industry

Phase one - Testing and maintenance.

Phase two - Product development.

Phase three – Business ownership.

Phase four - Bellwether for global markets.

Concept Introduction

Porter's five forces is a framework for the industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979.

It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market.

Attractive means – overall profitability. Unattractive industry – “ Pure Competition”

available profits for all firms are driven down to zero.

Porter’s 5 point Analysis Three of Porter's five forces refer to competition

from external sources. The remainder are internal threats.

Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants

Two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

Ad hoc basis.

Relevant Search Google Market share – 71.47%.

Bing Market share - 16.28%. Google – Search engine.

Bing – Decision engine.

Business Strategy - Google – Search, Ad words, ranking Algorithm, Computing & data warehousing.

Business Strategy – Bing – Type less & do more.

Launched on 28th May 2009

Replacement of MSN Live Search

Tie up with Yahoo for replacing yahoo search with Bing on 29th July 2009

Current market share is 16.28%

Launched in January 1996 by Larry Page

Corporate office in California, USA

Grown through new products, acquisitions and partnerships.

Current market share 71.47%

‘No. 1 place to work’: Fortune Magazine

Porters’ Five Forces Model

Market leader is Google (71.47%)

Google synonymous with search

Bing + Yahoo search = Tie UP (3.49%)+ (6.68%) = (10.17%)

BING Faces a huge short term threat.

Long term threat from competitors might reduce

High Rivalry within industry.

Negligible substitutes

Static in nature

Libraries, Encyclopedias, Magazines, Newspapers, etc

Low threat from substitutes

Current monopolistic position held by Google.

Difficult to enter and sustain.

Lack of qualitative and quantitative information.

Familiarity of users with current players.

Low threat of new entrants.

Suppliers are:Information seekersContent SupplierIT SupplierEquipment SupplierMaintenance Service Supplier

Facilitate revenue generation.

No payment, barter of information for information seekers.

High bargaining power.

Can supply to any other search engine

Advertisers are the buyers

Pay for ad space

Source of revenue

High bargaining power

High market share of Google

Conclusion Google’s - S.W.O.T

Strength

1. Number one search engine on the net.

2. The speed & simplicity of its search engine is reliable & user friendly.

3. It’s acquired You Tube, regarded to be the number-one online video portal users.

4. It’s Ad Words & Ad Sense programs working as the main mechanism.

5. It’s hired PhDs specially to work for enhancing the search engine algorithms which will render the search faster, relevant & more efficient. 6. It provides its search engine interface to 88 languages.

Weaknesses 1. Dependent mostly on its search based marketing.

2. The cost for the data-center getting higher & higher.

3. It’s weak presence regarding the social- networking space.

4. It does not hold any strategy for contraction.

Opportunities 1. Using higher value content on the net.

2. Simple specialist search, which can be integrated using open-url. 3. It can increase its overall commercial spending online.

4. Its can enhance by having new acquisitions.

Threats

1. It can lose control over the indexing policy owner. 2. Library services becoming less visible.

3. Users ending up not getting to the institutional subscription.

4. Competition from firms like Yahoo, MSN.